A demarcation agreement is a document that specifies the boundaries of responsibilities between two organisations. Councils often have demarcation agreements with adjacent municipalities and other road authorities to clearly define which authority is responsible for the maintenance and upkeep of boundary roads and non-council roads within the boundaries of the municipality.

In Victoria there is/was a "Ministerial Code for Operational responsibilities for Declared Freeways and Arterial Roads" that sets out what if any responsibilities Councils have for declared freeways and arterial roads.